Read the following case study and answer the question given in the end.
Almost 50 years ago, Phil Knight and his college track coach, Bill Bowerman,
founded Blue Ribbon Sports (later renamed Nike) to distribute Japanese
running shoes. A few years later they were designing, producing, and selling
athletic shoes. Today Nike is the 18th most valuable brand in the world, with
annual sales of more than $28 billion. Part of its success comes from adapting
its marketing strategy to changing market conditions but Nike hasn’t always
adapted quickly. Back in the early 1980s, Nike was so focused on running
shoes that it missed the aerobics shoe craze and fell behind rival Reebok.
Nike profits fallen and only aggressive cost-cutting saved the company.
After Nike signed Michael Jordan to endorse its basketball shoes in 1984, the
Air Jordan line took the market by storm. Later, when Nike’s advertising
agency came up with the “Just Do It!” slogan and an ad campaign that
covered television, magazines, and billboards around the world raced Nike
further ahead. “Just Do It” helped carry Nike through the 1990s and its profits
soared on rising sales aided by low cost foreign production.
Then, in the late 1990s, the company came under attack when it was reported
that some of its suppliers used child labor. At first Nike denied responsibility,
claiming it couldn’t control how its suppliers operated. But public protest
showed that society expected more from a large, successful corporation, and
Nike began to closely monitor its suppliers’ labor practices. Since then, Nike’s
social responsibility efforts have turned around its reputation. For example,
Nike leads a group of 10 partners in the Green Xchange, a web-based
marketplace where member firms collaborate and share ideas to foster
sustainability.
These days, Nike targets growth in emerging markets like China. Nike is
courting Chinese consumers who are crazy about basketball (especially
basketball superstar, LeBron James) by touting the NBA star in its ads. Nike
works with Chinese athletes, too, including Olympic hurdler Liu Xiang and
tennis player Li Na. Nike was one of the first brands to jump onto the Chinese
mobile messaging service WeChat—directly connecting with hundreds of
millions of Chinese consumers.
To appeal to the more price-sensitive Chinese consumer, Nike’s product line
includes lower-priced shoes than those it sells in the United States. And
because China doesn’t have many large shopping malls, Nike has worked
with retail partners to open 5,000 small stores—many focusing on a single
sport. Nike is also ramping up online sales as Chinese customers grow
increasingly comfortable with online buying. Innovation continues to be an
important part of Nike’s culture. Some of Nike’s recent innovations involve
digital tools that create communities for its customers. For example, the Nike+
Training Club (N+TC) app runs on iPhone and Android devices and targets
women at all fitness levels. The N+TC app has more than 100 workouts in 16
languages.
Users can choose from dozens of different four-week programs designed to
help them “Get Lean,” “Get Strong,” or “Get Focused.” The programs feature
Nike athletes like tennis star Serena Williams and gymnast Gabby Douglas
who act as virtual trainers. The app also lets users connect with friends and
other users who motivate each other to work out. Similar Nike apps target
runners, skate boarders, golfers, and more. And the apps are free! They help
build long-term relationships (and future sales) with customers after they buy
Nike workout gear. Innovations like these need to keep coming if Nike expects
to continue to run ahead of a strong field of competitors that includes Adidas,
Under Armour, and Chinese upstart Li Ning.
Question
In what ways does Nike appear to follow the marketing
concept? Suggest two other activities Nike could do to follow the marketing
concept. in
Answers
Answer:
Explanation:
Read the following case study and answer the question given in the end.
Almost 50 years ago, Phil Knight and his college track coach, Bill Bowerman,
founded Blue Ribbon Sports (later renamed Nike) to distribute Japanese
running shoes. A few years later they were designing, producing, and selling
athletic shoes. Today Nike is the 18th most valuable brand in the world, with
annual sales of more than $28 billion. Part of its success comes from adapting
its marketing strategy to changing market conditions but Nike hasn’t always
adapted quickly. Back in the early 1980s, Nike was so focused on running
shoes that it missed the aerobics shoe craze and fell behind rival Reebok.
Nike profits fallen and only aggressive cost-cutting saved the company.
After Nike signed Michael Jordan to endorse its basketball shoes in 1984, the
Air Jordan line took the market by storm. Later, when Nike’s advertising
agency came up with the “Just Do It!” slogan and an ad campaign that
covered television, magazines, and billboards around the world raced Nike
further ahead. “Just Do It” helped carry Nike through the 1990s and its profits
soared on rising sales aided by low cost foreign production.
Then, in the late 1990s, the company came under attack when it was reported
that some of its suppliers used child labor. At first Nike denied responsibility,
claiming it couldn’t control how its suppliers operated. But public protest
showed that society expected more from a large, successful corporation, and
Nike began to closely monitor its suppliers’ labor practices. Since then, Nike’s
social responsibility efforts have turned around its reputation. For example,
Nike leads a group of 10 partners in the Green Xchange, a web-based
marketplace where member firms collaborate and share ideas to foster
sustainability.
These days, Nike targets growth in emerging markets like China. Nike is
courting Chinese consumers who are crazy about basketball (especially
basketball superstar, LeBron James) by touting the NBA star in its ads. Nike
works with Chinese athletes, too, including Olympic hurdler Liu Xiang and
tennis player Li Na. Nike was one of the first brands to jump onto the Chinese
mobile messaging service WeChat—directly connecting with hundreds of
millions of Chinese consumers.
To appeal to the more price-sensitive Chinese consumer, Nike’s product line
includes lower-priced shoes than those it sells in the United States. And
because China doesn’t have many large shopping malls, Nike has worked
with retail partners to open 5,000 small stores—many focusing on a single
sport. Nike is also ramping up online sales as Chinese customers grow
increasingly comfortable with online buying. Innovation continues to be an
important part of Nike’s culture. Some of Nike’s recent innovations involve
digital tools that create communities for its customers. For example, the Nike+
Training Club (N+TC) app runs on iPhone and Android devices and targets
women at all fitness levels. The N+TC app has more than 100 workouts in 16
languages.
Users can choose from dozens of different four-week programs designed to
help them “Get Lean,” “Get Strong,” or “Get Focused.” The programs feature
Nike athletes like tennis star Serena Williams and gymnast Gabby Douglas
who act as virtual trainers. The app also lets users connect with friends and
other users who motivate each other to work out. Similar Nike apps target
runners, skate boarders, golfers, and more. And the apps are free! They help
build long-term relationships (and future sales) with customers after they buy
Nike workout gear. Innovations like these need to keep coming if Nike expects
to continue to run ahead of a strong field of competitors that includes Adidas,
Under Armour, and Chinese upstart Li Ning.
Question
In what ways does Nike appear to follow the marketing
concept? Suggest two other activities Nike could do to follow the marketing
concept.
Answer:
Explanation: